It’s costing companies more to recruit top talent in a seller’s market. According to the 2007 Worldwide ERC New Hire report, the tighter labor market is forcing companies to offer more enticements with their recruiting strategies.

• “More than 90 percent of the companies surveyed reported having difficulty in recruiting the right people—22 percent considered the problem fairly severe.”

• “The majority of respondents (79 percent) use their relocation policy as a recruiting tool. Most companies also use signing bonuses, although usually only for select new hires.”

Here is their chart that summarizes the challenges:

The first two factors seen together paint a bleak picture. Increased competition with other companies, combined with a decreased number of qualified candidates, means the demand is steadily rising while the supply continues to shrink. Read Four Key Factors to Watch in the War for Talent for more about how market factors and technology are contributing to the scenario.